Chapter 5 Personal Finance Quiz

An example of discretionary spending is _______.

• Utilities and food

• Transportation

• Monthly rent

• Nonessential goods and services

Why do stores like scan and go options, apps, and one-click purchases?

• It's harder for customers to pay, so they end up saving money.

• It makes paying easier and faster, so customers are more likely to overspend.

• Digital pay is the way of the future, and retail stores like being ahead of the times.

• It's easier for the retail store clerks.

When someone steals and uses your debit or credit card info, that's called _______________.

• Networking

• Borrowing

• Fraud

• Authorized spending

What does it mean to develop power over purchase?

• You are powerless in the face of an impulse purchase.

• You can make decisions very quickly when it comes to purchasing items.

• You are able to slow down and think through your motives before buying something.

• You have power to purchase whatever you want, and you do so.

Companies use marketing to get your prefrontal cortex offline so you'll be vulnerable to impulse purchases.

• True

• False

What is the digital marketing strategy that tracks users across the web?

• Retargeting

• Native ads

• YouTube videos

• Content marketing

Before you insert your debit card at the gas pump, you should always . . .

• Check out the card reader to see if it looks different, loose, or worn

• Make sure you have enough money in your account

• Ask the store clerk if there has been a thief here lately

• Pay cash—never use a card at a gas pump

Why does brand recognition help businesses?

• It makes their name and logo easily memorable for consumers.

• It helps the business recognize their own logo.

• It keeps the consumer from buying more of their product or service.

• It helps them partner with other businesses.

Why should you never buy the extended warranty?

• Retail items and products rarely break or malfunction.

• You should buy the extended warranty. It is a smart financial decision.

• Most retailers will replace or repair the product if it stops working within the first year.

• The retailers never keep their promises.

Appreciating who you are and what you have instead of wanting what your friends have is called _________.

• Comparison
• Contentment
• Gratitude
• Consumerism